Consulting Services Agency for Medical Organizations

The growing population worldwide causes an increase in demand for better-managed
healthcare institutions. However, the health management system in Azerbaijan lacks
professionals who can cope with the new trends in health management. Hospitals worldwide
get assistance from healthcare consulting firms to improve their performance. However, there
is no consulting firm in the health sector that can fill the gap in Azerbaijan. This capstone
project will evaluate the feasibility of opening and operating a consulting firm for medical
institutions and includes the assessment of the current market from many aspects for
introducing a new type of consulting firm named “Consulting Services Agency for Medical
Organizations” in Baku. The first part of the paper includes the types of services a consulting
firm can provide, based on the current literature regarding the importance of and demand for
these services. Secondly, a market analysis of the Azerbaijan economy and the business
environment was carried out. Lastly, surveying 43 private and public hospitals operating in
Baku, the business's demand and possible revenue were studied. Also, this data was analyzed
to form the customer profiles, projected income, and growth strategy. The results show that
there is a need for specific services to be provided by consulting firms. After evaluating the
initial costs for set-up and variable costs of the business, it is concluded that the consulting firm
can be opened and successfully operate in Azerbaijan. Financial projections confirm possible
positive profits in the first year of operation, but substantial profits will be earned in the third
year.